Gupshup, a messaging infrastructure company founded in 2004, has transformed into a $350 million business focused on conversational AI, CEO and cofounder Beerud Sheth said. The company reported global revenue of around $300 million in FY23 and is profitable in FY26. Currently, 25% of Gupshup's revenue comes from AI-related offerings, marking a significant shift from its traditional SMS and WhatsApp messaging services, according to inc42.com.
Gupshup's evolution began with SMS and basic messaging, expanding to WhatsApp and now to voice AI, AI agents, and campaign orchestration tools that connect multiple AI models with customer engagement channels. This transition involved workforce reductions during FY26 but leveraged Gupshup's existing enterprise customer base and infrastructure. Sheth emphasized that the company is not launching a conventional AI product but is 'AI-ifying' its established relationships and transaction volumes, per inc42.com.
The move into conversational AI aligns with broader trends in customer engagement, where enterprises seek integrated AI solutions for communication. Gupshup's approach contrasts with startups launching new AI products by building on nearly two decades of experience and infrastructure. The company’s strategy offers a competitive moat through its deep understanding of business-to-customer communication and existing market presence, positioning it alongside other AI-driven communication platforms, inc42.com reported.
Gupshup’s CEO Beerud Sheth highlighted that the company’s AI offerings now contribute a quarter of its revenue, underscoring the scale of its transformation. The firm’s FY26 profitability and $350 million revenue milestone reflect its successful shift toward AI-powered conversations, according to inc42.com.